SOURCE: Golden Predator Mining Corp.

Golden Predator Mining Corp.

October 13, 2016 08:00 ET

Golden Predator Intercepts 5.1 Meters of 32.1 g/t Gold at Brewery Creek's Lucky Deposit

VANCOUVER, BC --(Marketwired - October 13, 2016) - Golden Predator Mining Corp. (TSX VENTURE: GPY) (OTCQX: NTGSF) (the "Company") is pleased to announce new drill results from a program designed to gather metallurgical, geotechnical and environmental information and samples from the Brewery Creek project in the Yukon. Several of these holes, which were generally shallow and proximal to the existing pits, encountered significantly higher than anticipated gold grades. Highlights include (see attached figures for hole locations):

  • Hole #11 with 8.2 meters (m) of 21.3 g/t gold from 22.2 m down hole including 5.1 m of 32.1 g/t gold from 23.9 m down hole.
  • Hole #31 with 17.5m of 5.5 g/t gold from 9.9 meters down hole from the north side of the former Lucky pit floor.
  • Hole #25 with 5.6m of 5.2 g/t gold from 21.2 meters down hole from the eastern edge of the former Lucky pit.
  • Composite sample from Hole #24 of two intervals from 25.9m to 27.1m and 34.2m to 35.1m assayed 4.33 g/t gold from the northern portion of the former Lucky pit floor.

"We are very pleased with the results of our 2016 drill program at Brewery Creek, it demonstrates the potential for higher gold grades, and shows that significant amounts of oxide material remains in the old pits," said Janet Lee-Sheriff, Chief Executive Officer. "Moving forward the Company will be considering possible options to advance the Brewery Creek project."

2016 Brewery Creek Drill Program

Three metallurgical holes and one geotechnical hole at the Lucky deposit intersected high grade gold mineralization below the former pit floors on the northern and eastern sides and in a central area. The program was the first engineering, metallurgical and environmental drilling conducted by the Company at the previously mined Lucky, Kokanee and Golden deposits.

The drill program provides large diameter core for metallurgical testing to demonstrate the expected higher gold recoveries from oxide material after crushing and agglomeration versus the gold recoveries experienced from un-crushed run-of-mine material by the former operator. The drilling will also provide confirmation of the geotechnical parameters used for pit designs and re-establish ground water base line information. Results may provide information for a potential Preliminary Economic Assessment (PEA) update, which is presently being evaluated.

The metallurgical program consisted of twelve (12) PQ core (85 mm diameter) holes totaling 639 m to obtain oxide material for testing. Five holes were drilled at Lucky, five holes were drilled at Kokanee and two holes were drilled at Golden. The metallurgical holes provided, as planned, oxide material for heap leach testing but have additionally provided high grade sulfide material which will be tested for gold recovery by CIL and flotation methods. This will be the first metallurgical testing of any non-oxide material at Brewery since preliminary testing in the late 1990s.

Geotechnical and ground-water monitoring drilling consisted of eleven (11) thin wall HQ (71 mm) holes totaling 694 m. Geotech Hole #11 was drilled in the proposed western high-wall of a conceptual expanded Lucky pit and intersected an 8.2m zone of strong quartz veining within quartz monzonite. The hole was subsequently sampled and returned an average assay of 21.2 g/t gold over 8.2 m including 32.1 g/t gold over 5.1m.

See Table 1 below for complete assay results from all drill holes. To review Brewery Creek maps highlighting drilling locations please visit:

Ref # Hole ID Area Hole Type Core

11 GT16-011 Lucky Geotech 71 mm 21.3 29.5 8.2 21.2
  including     22.9 28.0 5.1 32.1
  break down of high grade intervals 22.9 23.9 1.0 12.6
          23.9 24.4 0.5 18.3
          24.4 25.3 0.9 31.4
          25.3 25.9 0.6 27.4
          25.9 26.4 0.5 48.4
          26.4 26.9 0.5 46.8
          26.9 27.4 0.5 67.1
          27.4 28.0 0.6 26.5
24 PBC16-24 Lucky Metallurgy 85 mm 1.5 3.0    
  composite of two intervals   11.6 15.75.6
  composite of two intervals   25.9 27.1 1.2 4.3
          34.2 35.1 0.8  
25 PBC16-25 Lucky Metallurgy 85 mm 21.2 26.8 5.6 5.2
29 PBC16-29 Lucky Metallurgy 85 mm 70.7 92.5 21.8 1.7
30 PBC16-30 Lucky Metallurgy 85 mm no significant intercepts 
31 PBC16-31 Lucky Metallurgy 85 mm 6.4 8.2 1.8 1.0
          9.9 27.4 17.5 5.5
15 PBC16-15 Kokanee Metallurgy 85 mm 9.1 33.9 24.8 1.1
          37.3 54.9 17.6 1.50
16 PBC16-16 Kokanee Metallurgy 85 mm 7.9 32.9 25.0 0.75
          36.6 65.5 28.9 0.63
17 PBC16-17 Kokanee Metallurgy 85 mm 0.0 12.3 12.3 1.50
          14.1 21.5 7.4 0.6
  composite of two intervals   29.7 31.6    
          33.8 35.83.9
19 PBC16-19 Kokanee Metallurgy 85 mm 32.2 38.1 5.9 3.83
20 PBC16-20 Kokanee Metallurgy 85 mm 15.2 20.4 5.2 0.58
21 PBC16-21 Golden Metallurgy 85 mm 14.2 25.6 11.4 1.94
22 PBC16-22 Golden Metallurgy 85 mm 5.2 26.1 20.90.52

All intervals are reported as the down hole length and are not interpreted to be true widths.

About Brewery Creek

The Brewery Creek Project is a past producing heap leach gold mining operation with approximately 280,000 oz Au produced from seven near-surface oxide deposits along the property's Reserve Trend from 1996 through 2002. The mine (operated by Viceroy Resource Corporation) shut down primarily due to low gold prices. The 200 km2 property is located 55 km due east of Dawson City, accessible by paved and gravel roads from the junction of the North Klondike and Dempster Highways.

Brewery Creek hosts oxide mineral resources classified as follows: Indicated mineral resources of 577,000 gold ounces contained in 14.15 million tonnes of material with an average grade of 1.27 g/t, and Inferred mineral resources of 279,000 gold ounces contained in 9.3 million tonnes with an average grade of 0.93 g/t (News Release dated September 19, 2013).

All necessary permits required to conduct additional exploration are in place. The Brewery Creek Project holds a Type A Water License with an expiry date of December 31, 2021, subject to the restrictions and conditions contained in the Yukon Water Act and Regulations and a Quartz Mining License (QML) with an expiry date of December 31, 2021. The Brewery Creek project has a Socio Economic Accord with the Tr'ondek Hwech'in.

Sampling Methodology, Quality Control and Assurance

Hole GT-011 was submitted to ALS Chemex Laboratories in Whitehorse, Yukon for analysis. The whole core sample was crushed in its entirety to 70% passing 2 mm (ALS method CRU-31) a 250 gram split was taken and pulverized to 85% passing 75 microns (ALS method PUL-31) and a 30g subsample was submitted for fire assay with an atomic absorption finish (ALS method Au-AA23). Samples that assayed over 10.0 g/t gold were reanalyzed by ALS method Au-SCR24 a screen metallic assay method utilizing an approximate 2kg pulp. Field blank and standards were inserted in to the sample stream by Golden Predator personnel and all QA/QC samples passed.

The PQ core samples were sent to SGS Laboratories in Burnaby, British Columbia. Each sample represented an approximate downhole length of 1.5m. A total of 160 samples from the PQ drilling were submitted. Each individual sample was stage crushed to 100% passing ¾ inch. Then a 1 kg sub-sample was riffle split out and stage crushed to 100% passing 10 mesh. A 100 gram was then riffle spilt and pulverized. A 30 gram portion of the 100 gram pulp was submitted for standard 30 gram fire assay technique for gold. An additional split from the pulp of 15 gram was used for cyanide solubility test for gold recovery. Based on geologic observations, total gold content from the fire assay and cyanide soluble gold from the AuCN assay individual samples will be composited for further metallurgical testing. Samples considered oxide (generally > 50% Cn solubility) will be further tested with coarse particle (~3/8 inch) bottle rolls and loaded in to 4 inch diameter columns for column leaching testing and samples considered sulfide (generally < 50% CN solubility) will be tested by fine particle bottle roll following CIL procedures and further testing for gold recovery by rougher flotation.

The technical content of this news release has been reviewed and approved by Mark Shutty, CPG, a Qualified Person as defined by National Instrument 43-101 and an employee of the Company.

About Golden Predator Mining Corp.

Golden Predator Mining Corp., a well-financed Canadian gold mineral exploration company, is focused on advancing its high grade 3 Aces Project in Canada's Yukon. The 3 Aces property is a 225 km2 property consisting of 1,118 contiguous quartz claims (23,000 hectares) located in southeast Yukon. The veins discovered to date are characterized by coarse visible gold with a low sulphide content.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This press release contains forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations that the private placement will complete as described herein, that the Project will advance through permitting and feasibility. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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